8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington,  D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):  August 8, 2017

LANDAUER, INC.

(Exact Name of Registrant as Specified in its Charter)

Delaware	1-9788	06-1218089
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

2 Science Road, Glenwood, Illinois	60425
(Address of Principal Executive Offices)	(Zip Code)

(708) 755-7000

(Registrant's Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[  ]Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[  ]Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[  ]Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[  ]Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On August 8, 2017, Landauer, Inc. (the “Company”) issued a Press Release announcing its earnings for its fiscal 2017thirdquarter ended June 30, 2017.  A copy of the Press Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

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Item 7.01	Regulation FD Disclosure

Beginning August 8, 2017, the Company will make available and distribute to analysts and prospective investors a slide presentation. The presentation materials include information regarding the Company’s operating and growth strategies and financial performance. Pursuant to Regulation FD, the presentation materials are attached as Exhibit 99.2 to this Current Report on Form 8-K.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

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EXHIBIT NUMBER	DESCRIPTION
99.1	Press Release dated August 8, 2017
99.2	Investor Slide Presentation

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LANDAUER, INC.
August 10, 2017	By:	/s/ Daniel J. Fujii
		Daniel J. Fujii
		Chief Financial Officer

EX-99.1

Exhibit 99.1

News Release

LANDAUER

LANDAUER, INC. Reports

Fiscal 2017THIRDQUARTERRESULTS

EARNINGS PER DILUTED SHARE OF $0.66

For Further Information Contact:

Michael DeGraff

Sard Verbinnen & Co

Phone: 312.895.4734

Email: mdegraff@sardverb.com

GLENWOOD, Ill.—  August 8, 2017—Landauer, Inc. (NYSE: LDR), a recognized leader in personal and environmental radiation measurement and monitoring and outsourced medical physics services, today reported financial results for its fiscal 2017  third quarter ended June 30, 2017.  

Fiscal 2017Third Quarter Highlights

· Reported revenue of $39.9 million compared to $37.9 million in the third quarter of 2016

o Excluding the divested Medical Products business, pro forma revenue increased 7.5% compared to the prior year

o Military revenues increased $0.7 million

· Reported net income of $6.4 million compared to $7.3 million in the third quarter of 2016

o Prior year net income included a $1.7 million post-tax gain on divestiture of the Medical Products business

· On a GAAP basis, earnings per diluted share of $0.66 compared to $0.76 in the third quarter of 2016

· Increasing full year 2017 outlook for diluted earnings per share to $1.81 to $1.87 from the previous range of $1.65 to $1.71

Mike Kaminski, President and Chief Executive Officer of Landauer stated, “Our third quarter results reflect the continued growth of our recurring business as well as the fulfillment of our non-recurring military order and a one-time tax benefit all contributing to a strong financial quarter. During the quarter we continued to advance our strategic initiatives in informatics and our Verifii digital dosimetry platform remains on schedule for a controlled commercial launch in the second half of calendar 2017.”

Third Quarter Financial Overview

Revenues for the third fiscal quarter of 2017 were $39.9 million, a 5.3% increase compared to revenues of $37.9 million for the third fiscal quarter of 2016.  Excluding the Medical Products business which was divested in the third fiscal quarter of 2016, total revenues increased $2.8 million or 7.5% compared to the prior year period.  Radiation Measurement revenues for the quarter increased to $29.6 million from $27.5 million for the third fiscal quarter of 2016.  Military sales in the third fiscal quarter of 2017 increased  $0.7 million compared to the prior year period.The Company completed its final shipment for the National Guard order during the third fiscal quarter of 2017.  While the Company is continuing to pursue orders for its Radwatch products, there are currently no open contracts or purchase orders for military products.  Medical Physics revenues increased $0.7 million, or 7.3%, to $10.3 million.

Operating income for the third fiscal quarter of 2017 was $8.6 million, compared to operating income of $7.7 million for the third fiscal quarter of 2016.  Operating income increased $0.9 million compared to the prior year period due primarily to the timing of military sales.

Fiscal Nine Months Financial Overview

Revenues for the first nine months of fiscal 2017 were $116.6 million, a 3.6% increase compared to $112.5 million for the first nine months of fiscal 2016. Excluding the divested Medical Products business, total revenues increased $9.9 million or 9.3% compared to the prior year period.  Radiation Measurement revenues increased to $85.9 million from $77.7 million in the prior year period.  Military sales in the first nine months of fiscal 2017 increased $5.8 million compared to the prior year period. The Medical Physics segment increased $1.8 million, driven by demand for imaging services.

Operating income for the first nine months of fiscal 2017 was $23.8 million, compared to operating income of $21.2 million for the first nine months of fiscal 2016. Excluding the operating income from the divested Medical Products business, operating income increased $3.7 million compared to the prior year period due primarily to the timing of military sales.

Fiscal 2017 Outlook

Based on its results for the first nine months of 2017, the Company is increasing its full year 2017 outlook for diluted earnings per share to $1.81 to $1.87 from the previous range of $1.65 to $1.71. The Company continues to expect fiscal 2017 revenues in the range of $149 million to $154 million.

The revised earnings per share guidance reflects the Company’s first three quarters of strong margins driven by the fulfillment of the episodic military orders and cost control.  The fourth quarter expectations are consistent with prior statements reflecting minimal capital shipments and an increase in non-recurring expenses associated with the Verifii launch and an increase in incentive accruals.

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Use of Non-GAAP Financial Measures

Management believes the disclosure of certain non-GAAP financial measures enhances investor understanding of our financial performance.  Non-GAAP financial measures disclosed in this report include: EBITDA, Pro Forma Revenue and Pro Forma Operating Income.

EBITDA is presented here not as an alternative to net income, but rather as a measure of the Company’s operating performance and is not intended to be a presentation in accordance with GAAP. Since EBITDA (generally, net income plus interest expenses, taxes, depreciation and amortization) is not calculated identically by all companies, this presentation may not be comparable to EBITDA presentations disclosed by other companies. Management believes that EBITDA is useful in evaluating the Company’s operating performance compared to that of other companies in its industry because the calculation of EBITDA generally eliminates the effects of certain non-cash and other items that may vary for different companies for reasons unrelated to overall operating performance.

The Pro Forma Revenue and Pro Forma Operating Income measures exclude the Medical Products business, which was divested in May 2016. 

These financial measures are not recognized measurements under GAAP and should not be considered as an alternative to the most directly comparable measures presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included within this news release.

Conference Call Details

Landauer has scheduled its third quarter conference call for investors over the Internet on Tuesday, August 8, 2017, at 4:00 p.m. Central Time (5:00 p.m. Eastern Time). To participate, callers should dial 866-866-1542 (within the United States and Canada), or 707-294-1539 (international callers), passcode 63881527, about 10 minutes before the presentation. To listen to a webcast on the Internet, please go to the Company’s website at http://www.landauer.com at least 15 minutes early to register, download and install any necessary audio software. Investors may access a replay of the call by dialing 855-859-2056 (within the United States and Canada), or 404-537-3406 (international callers), passcode 63881527, which will be available through Thursday, September 7, 2017. The replay will also be available on Landauer’s website for 30 days following the call.

About Landauer

Landauer is a leading global provider of technical and analytical services to determine occupational and environmental radiation exposure, as well as the leading domestic provider of outsourced medical physics services. For more than 50 years, the Company has provided complete radiation dosimetry services to hospitals, medical and dental offices, universities, national laboratories, nuclear facilities and other industries in which radiation poses a potential threat to employees. Landauer’s services include the manufacture of various types of radiation detection monitors, the distribution and collection of the monitors to and from customers, and the analysis and reporting of exposure findings. The Company provides its dosimetry services to approximately 1.8 million individuals globally. In addition, through its Medical Physics segment, the Company provides therapeutic and imaging physics services to the medical physics community. For information about Landauer, please visit their website at http://www.landauer.com

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Safe Harbor Statement

Some of the information shared here (including, in particular, the section titled “Fiscal 2017 Outlook”) constitutes forward-looking statements that are based on assumptions and involve certain risks and uncertainties. These include the following, without limitation: assumptions, risks and uncertainties associated with the Company’s future performance; the Company’s development and introduction of new technologies in general; the ability to protect and utilize the Company’s intellectual property; continued customer acceptance of the InLight technology; the adaptability of optically stimulated luminescence (OSL) technology to new platforms and formats; military and other government funding for the purchase of certain of the Company’s equipment and services; the impact on sales and pricing of certain customer group purchasing arrangements; changes in spending or reimbursement for medical products or services; the costs associated with the Company’s research and business development efforts; the usefulness of older technologies and related licenses and intellectual property; the effectiveness of and costs associated with the Company’s IT platform enhancements; the anticipated results of operations of the Company and its subsidiaries or joint ventures; valuation of the Company’s long-lived assets or reporting units relative to future cash flows; changes in pricing of services and products; changes in postal and delivery practices; the Company’s business plans; anticipated revenue and cost growth; the ability to integrate the operations of acquired businesses and to realize the expected benefits of acquisitions; the risks associated with conducting business internationally; costs incurred for potential acquisitions or similar transactions; other anticipated financial events; the effects of changing economic and competitive conditions, including instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; foreign exchange rates; government regulations; accreditation requirements; changes in the trading market that affect the costs of obligations under the Company’s benefit plans; and pending accounting pronouncements. These assumptions may not materialize to the extent assumed, and risks and uncertainties may cause actual results to be different from what is anticipated today. These risks and uncertainties also may result in changes to the Company’s business plans and prospects, and could create the need from time to time to write down the value of assets or otherwise cause the Company to incur unanticipated expenses. Additional information may be obtained by reviewing the information set forth in Item 1A. “Risk Factors” and Item 7A. “Quantitative and Qualitative Disclosures about Market Risk” and information contained in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016 and other reports filed by the Company, from time to time, with the Securities and Exchange Commission. The Company does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in the Company’s expectations, except as required by law.

Financial Tables Follow

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Landauer, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets (Unaudited)

(Dollars in Thousands)	June 30, 2017		September 30, 2016
Assets
Cash and cash equivalents	$	21,064	$	13,285
Receivables, net of allowances of $1,324 at June 30, 2017 and $1,296 at September 30, 2016		33,618		31,998
Inventories		5,229		5,670
Prepaid expenses and other current assets		13,348		5,049
Total current assets		73,259		56,002
Net property, plant and equipment		47,226		46,417
Equity in joint ventures		26,488		26,174
Goodwill		33,916		33,807
Intangible assets, net of accumulated amortization of $12,704 at June 30, 2017 and $11,772 at September 30, 2016		8,602		9,297
Other assets		8,675		19,119
Total assets	$	198,166	$	190,816
Liabilities
Total current liabilities	$	36,307	$	34,498
Long-term debt		100,600		109,100
Other non-current liabilities		30,374		26,619
Total liabilities		167,281		170,217
Stockholders' equity
Landauer, Inc. stockholders' equity		29,432		19,178
Noncontrolling interest		1,453		1,421
Total stockholders' equity		30,885		20,599
Total Liabilities and Stockholders' Equity	$	198,166	$	190,816

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Landauer, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations (Unaudited)

		Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands, Except per Share)	2017		2016		2017		2016
Total revenues	$	39,888	$	37,854	$	116,582	$	112,466
Cost and expenses:
Cost of sales		18,801		18,336		55,543		54,678
Selling, general and administrative		12,504		11,805		37,205		36,606
Total costs and expenses		31,305		30,141		92,748		91,284
Operating income		8,583		7,713		23,834		21,182
Equity in income of joint ventures		1,206		244		3,015		797
Other expense, net		(680)		2,847		(2,340)		728
Income before taxes		9,109		10,804		24,509		22,707
Income tax expense		2,509		3,382		7,976		7,074
Net income		6,600		7,422		16,533		15,633
Less:  Net income attributed to noncontrolling interest		200		157		557		446
Net income attributed to Landauer, Inc.	$	6,400	$	7,265	$	15,976	$	15,187
Net income per share attributable to Landauer, Inc. shareholders:
Basic	$	0.67	$	0.76	$	1.67	$	1.59
Weighted average basic shares outstanding		9,585		9,531		9,562		9,523
Diluted	$	0.66	$	0.76	$	1.66	$	1.58
Weighted average diluted shares outstanding		9,606		9,564		9,595		9,555

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Landauer, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Nine Months Ended June 30,
(Dollars in Thousands)	2017		2016
Cash flows from operating activities:
Net income	$	16,533	$	15,633
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		8,047		8,461
Equity in income of joint ventures		(3,015)		(797)
Dividends from joint ventures		1,341		1,195
Stock-based compensation and related net tax benefits		2,449		2,048
Current and long-term deferred taxes, net		10,568		3,639
Gain on disposition of business		-		(3,904)
Gain on sale, disposal and abandonment of fixed assets		23		368
Gain on investments		(411)		(558)
Changes in operating assets and liabilities		(3,522)		(3,866)
Net cash provided by operating activities		32,013		22,219
Net cash (used in) provided by investing activities		(7,500)		3,795
Cash flows from financing activities:
Long-term borrowings, net		(8,500)		(21,085)
Dividends paid to stockholders		(7,979)		(7,933)
Other financing activities, net		(231)		(417)
Net cash used in financing activities		(16,710)		(29,435)
Effects of foreign currency translation		(24)		82
Net increase (decrease) in cash and cash equivalents		7,779		(3,339)
Opening balance - cash and cash equivalents		13,285		15,314
Ending balance - cash and cash equivalents	$	21,064	$	11,975

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Non-GAAP Financial Measures

A reconciliation of EBITDA, Pro Forma Revenue and Pro Forma Operating Income (i.e., non-GAAP financial measures) to the most directly comparable GAAP measures is provided below:

	Three Months Ended June 30,				Nine Months Ended June 30,
(Unaudited, Dollars in Thousands)	2017		2016		2017		2016
EBITDA
Net income attributed to Landauer, Inc.	$	6,400	$	7,265	$	15,976	$	15,187
Add back:
Net financing costs		580		589		1,752		2,420
Depreciation and amortization		2,695		2,800		8,047		8,461
Provision for income taxes		2,509		3,382		7,976		7,074
Earnings before interest, taxes, depreciation and amortization (EBITDA)	$	12,184	$	14,036	$	33,751	$	33,142

	Three Months Ended June 30,				Nine Months Ended June 30,
(Unaudited, Dollars in Thousands)	2017		2016		2017		2016
Pro Forma Revenue
Total Revenues, as reported	$	39,888	$	37,854	$	116,582	$	112,466
Less:
Medical Products adjustment		-		(800)		-		(5,802)
Total Revenues, pro forma	$	39,888	$	37,054	$	116,582	$	106,664

	Three Months Ended June 30,				Nine Months Ended June 30,
(Unaudited, Dollars in Thousands)	2017		2016		2017		2016
Pro Forma Operating Income
Operating Income, as reported	$	8,583	$	7,713	$	23,834	$	21,182
Less:
Medical Products adjustment		-		(140)		-		(1,062)
Total Operating Income, pro forma	$	8,583	$	7,573	$	23,834	$	20,120

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Segment Information

The following tables summarize financial information for each reportable segment for the three and ninemonths ended June 30:

	Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	2017		2016		2017		2016
Revenues by segment:
Radiation Measurement	$	29,594	$	27,492	$	85,918	$	77,716
Medical Physics		10,294		9,562		30,664		28,948
Medical Products		-		800		-		5,802
Consolidated revenues	$	39,888	$	37,854	$	116,582	$	112,466
	Three Months Ended June 30,				Nine Months Ended June 30,
(Dollars in Thousands)	2017		2016		2017		2016
Operating income (loss) by segment:
Radiation Measurement	$	12,138	$	10,294	$	34,779	$	29,161
Medical Physics		789		756		2,140		2,452
Medical Products		-		141		-		1,063
Corporate		(4,344)		(3,478)		(13,085)		(11,494)
Consolidated operating income	$	8,583	$	7,713	$	23,834	$	21,182

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EX-99.2

Exhibit 99.2

Exhibit 99.2

Some of the information shared here (including, in particular, the section titled “Fiscal Year 2017 Outlook”) constitutes forward-looking statements that are based on assumptions and involve certain risks and uncertainties. These include the following, without limitation: assumptions, risks and uncertainties associated with the Company’s future performance, the Company’s development and introduction of new technologies in general; the ability to protect and utilize the Company’s intellectual property; events or circumstances which result in an impairment of assets, including but not limited to, goodwill and identifiable intangible assets; continued customer acceptance of the InLight technology; the adaptability of optically stimulated luminescence (OSL) technology to new platforms and formats; military and other government funding for the purchase of certain of the Company’s equipment and services; the impact on sales and pricing of certain customer group purchasing arrangements; changes in spending or reimbursement for medical products or services; the costs associated with the Company’s research and business development efforts; the usefulness of older technologies and related licenses and intellectual property; the effectiveness of and costs associated with the Company’s IT platform enhancements and investments in cyber security enhancements; the anticipated results of operations of the Company and its subsidiaries or joint ventures; valuation of the Company’s long-lived assets or reporting units relative to future cash flows; changes in pricing of services and products; changes in postal and delivery practices; the Company’s business plans; anticipated revenue and cost growth; the ability to integrate the operations of acquired businesses and to realize the expected benefits of acquisitions; the risks associated with conducting business internationally; costs incurred for potential acquisitions or similar transactions; other anticipated financial events; the effects of changing economic and competitive conditions, including instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; foreign exchange rates; government regulations; accreditation requirements; changes in the trading market that affect the costs of obligations under the Company’s benefit plans; and pending accounting pronouncements. These assumptions may not materialize to the extent assumed, and risks and uncertainties may cause actual results to be different from what is anticipated today. These risks and uncertainties also may result in changes to the Company’s business plans and prospects, and could create the need from time to time to write down the value of assets or otherwise cause the Company to incur unanticipated expenses. Additional information may be obtained by reviewing the information set forth in Item 1A “Risk Factors” and Item 7A “Quantitative and Qualitative Disclosures about Market Risk” and information contained in the Company's Annual Report on Form 10-K for the year ended September 30, 2016 and other reports filed by the Company, from time to time, with the Securities and Exchange Commission. The Company does not undertake, and expressly disclaims, any duty to update any forward-looking statement whether as a result of new information, future events or changes in the Company’s expectations, except as required by law.

•The Joint Commission standards effective in July 2015 in the United States-Impacts 7,100 of the 20,500 U.S. healthcare organizations and programs, including hospitals, imaging clinics and certain ambulatory care centers-Estimated incremental cost of ~$30,000 annually for a hospital to comply with new standards•International standards becoming more restrictiveIndustry leading position, compelling market trends and strong financial profile drives long-term shareholder value•Next generation Verifii™ product has commenced initial field testing•Well positioned to meet emerging need for broader solution •Differentiated position creates higher barrier to entry for competition•Strong margins and limited capital requirements deliver compelling free cash flow•Defined capital allocation plan supports investment in growth initiatives and dividend•Industry-leading technology; proprietary Optically Stimulated Luminescence (OSL) crystal manufacturing process•Installed based of over 73,000 customers; 1.8 million individuals served•90% recurring revenue; 94% annual customer retention•Ability to provide enterprise radiation management or product only modelGlobal Leader in Occupational Radiation Products and Services Increased Regulation Drives Demand Compelling Growth and Expansion Opportunities Strong Financial Profile

.“Gold standard” in accuracy.Proprietary OSL crystal technology manufactured internally.Delivers wide-range of radiation monitoring:Dosimetry Reports with results are made available to the customer.Headquartered in Glenwood, IL.650 global employees.Only national network of imaging physicists.8 global markets.Service labs in Chicago, Tokyo, Paris, Brazil, Mexico City, Istanbul, Sydney, Beijing .1.8M annual individuals served worldwide;1.2M domesticallyDosimeter is received and analyzedDosimeter is physically shipped back to LANDAUERDosimeter isworn for designated wear periodOrder is manufactured and physically shipped to customerOrder placed; unique serial numbers are assigned for each participant’s dosimeter~45 days from date dosimeter was received by clientNeutron(Nuclear)X-Ray(Healthcare)Current Monthly Process(~15 million badges annually)TechnologyKey FactsEnergy Spectrum

ProfessionalOfficesServing Diverse End Markets Across Three VerticalsAcute Care HospitalsProfessional OfficesIndustrialEnergyEmergency ResponseMilitary/National Security/DOEW:\Landauer\Investors\Investor deck\Images\73470968_5.jpgW:\Landauer\Investors\Investor deck\Images\L41513.2429.jpgPhysician OfficesIDN HospitalsVeterinarianDentalRegional HospitalsImaging Centers$149 Million in FY 2016 Revenue62%6%74%0%20%40%60%80%Estimated U.S. Market Share -DosimetryIndustrialEstimated Market share data for 2014

Service LabsWell-positioned to serve an expanding global customer base of ~75,000 clients ChicagoMexicoBrazilParisIstanbulBeijingTokyoAustralia

Additional $1.5 million in Equity Incomefrom International Joint Ventures80%20%FY GAAP 2016 RevenueDomestic U.S.InternationalJoint VentureLocationNagase-LANDAUERJapanEpsilon LANDAUERTurkeyAquilaNew MexicoEstimated 25% international market share provides ample room for continued growth

U.S. Healthcare Trends are Fueling OpportunityIncreasingly complex and multi-dimensional radiation management landscape creates need for integrated, enterprise-wide solutions Tougher State Regulations Emerging•Pennsylvania•California•Massachusetts•Rhode Island•TexasHealthcare Consolidation•Larger buying groups create the need formore integrated andcost-effective solutionsEvolving Treatments•Advanced radiation treatment choices are becoming moreprevalentNew Compliance Standards•Heightened Diagnostic Imaging Requirements from The Joint Commission went into effect in July 2015Escalating penalties for non-compliance including fines, reduced reimbursements and loss of license

Reports:Necessary for complianceAnalytics:Context to informationBenchmarkingRelevance to peersTraining:Assures compliance and patientoutcomesContinuous Improvement:Integrated data across the enterpriseUniquely Positioned to Capitalize on Demand for SolutionsCombining products, services, data and analytics to deliver improved and more compliant processesSpaceRadiation Compliance SolutionsInformaticsRadiation MeasurementEquipmentPatientWorkerImaging PhysicsNew Regulatory Requirements Create Customer Demand(Effective July 2015)Solutions Platform

.Shift the market focus .Simple dose focus .Continuous management of radiation safety.Better equip customers to monitor and control employee exposure and meet increasing compliance regulations.Leverage digital-based platform to grow offering of tailored products and services designed to better connect the employee to the work environment.Launch and commercialization of Verifii™ platform.Intermittent analog measurement .Connected digital platform.Provide customers with timely, actionable compliance solutions.Generate meaningful cost benefitsConnect:to Real Time DataIntegrate:to a Broader SolutionExpand:Beyond Dose

.Provides customers with a scalable, digital platform that connects employees to their environment .Eliminates fragmented manual processes enabling focus on building a robust radiation management solution.Timely radiation data adds value to customers by allowing them to take targeted actions for practical and measurable process improvements.Controlled commercial launch expected in the second half of the yearA truly differentiated product and platform for incremental growth

Real-time and historic data & analytics are available to client via web & mobile appsAllows customers to track trends, monitor event specific dose levels and enact behavioral changes to better manage long-term exposure Data is processed and stored in the cloudDosimeter connects via Bluetooth LE to docking base stationDosimeter is assigned to individual onsite; establishing chain of custody~30 million incidents measured annually(~1% physically handled)

.Virtual compliance solution for smaller offices that do not have an existing function in place.340,000 sites across Veterinarians, Medical, Dental and Chiropractic practices.6% estimated U.S. market share.Increasing regulations and use of advanced imaging equipment driving need for radiation safety compliance.Market need for simple, integrated solution .Significant opportunity to drive margin expansionAcute Care HospitalsProfessional OfficeIndustrial.Allows customers to outsource compliance and safety solution to LANDAUER at a lower cost.74% estimated U.S. market share.Consulting force in place to meet demand from Joint Commission requirements .Expand product line to include software, consulting and more dosimetry.Deliver comprehensive compliance solution.Turn-key solution allows for autonomous measurement and safety management.Segmented into Oil, Gas, Nuclear and Military.62% estimated U.S. market share.Exclusive provider of battlefield dosimeters for Army, Reserve and National Guard.37% of field units replaced.Interoperability between branches.Goal of steady recurring baseline revenue with significant upside from non-recurring ordersExpandPenetrateCustomize

.Core business investments focused on top and bottom line growth.Emphasis on higher margin, annuity-style opportunities.Commercialization of next generation digital dosimetry platform while transitioning from current OSL crystal-based platform.Management compensation tied to ROIC.Long-term target of 2X –2.5X Debt/EBITDA leverage ratio .Currently 2%-3% dividend yield.Long history of paying competitive dividend for over 20 yearsFund Competitive DividendInvest in the BusinessPay Down Debt

•The Joint Commission standards effective in July 2015 in the United States -Impacts 7,100 of the 20,500 U.S. healthcare organizations and programs, including hospitals, imaging clinics and certain ambulatory care centers-Estimated incremental cost of ~$30,000 annually for a hospital to comply with new standards•International standards becoming more restrictiveIndustry leading position, compelling market trends and strong financial profile drives long-term shareholder value•Next generation Verifii™ product has commenced initial field testing•Well positioned to meet emerging need for broader solution •Differentiated position creates higher barrier to entry for competition•Strong margins and limited capital requirements deliver compelling free cash flow•Defined capital allocation plan supports investment in growth initiatives and dividend•Industry-leading technology; proprietary Optically Stimulated Luminescence (OSL) crystal manufacturing process•Installed based of over 73,000 customers; 1.8 million individuals served•90% recurring revenue; 94% annual customer retention•Ability to provide enterprise radiation management or product only modelGlobal Leader in Occupational Radiation Products and ServicesIncreased Regulation Drives DemandCompelling Growth and Expansion OpportunitiesStrong Financial Profile

Financial Overview

.Approximately 90% of revenue derived from subscriptions and is recurring in nature.2016 Revenues of $149.2 million impacted by 2015 Radon divestiture and 2016 Medical Products divestiture; pro forma 2016 revenues increased 4.8%.Contract with U.S. Army, Reserve and National Guard to replace its antiquated radiation monitoring system provides opportunities to expand to other global military and first responder markets.Strategic expansion contributing to long term growth prospects.Strong history of EBITDA to support dividend, reinvestment in the core business and capital required to support strategic expansion$149.7$155.1$151.3$149.22013201420152016Revenue ($ in millions, FYE 9/30)

$37.9Key Q3 FY 2017 Financial Drivers•Revenue of $39.9 million in the third quarter of fiscal 2017 includes ($0.8 million) impact of our divested Medical Products business•Military product sales increased $0.7 million compared to the prior year due to timing of shipments•Medical Physics revenues grew 7% over the prior year period•Operating income of $8.6 million compared to $7.7 million in the prior year, impacted by the increase in military product sales$27.5$29.6$9.6$10.3$0.8$0.0$0$5$10$15$20$25$30$35$40$45Q3 2016Q3 2017MillionsRevenueRad MeasurementMed PhysicsMed Products$39.9

* Non-GAAP financial measure($ Millions)Q3 FY2017As ReportedQ3 FY2017 Medical Products AdjustmentQ3 FY2017 Comparable, Excluding Divestiture*Revenue$39.9$ -$39.9Operating Income$8.6$ -$8.6($ Millions)Q3 FY2016As ReportedQ3 FY2016 Medical Products AdjustmentQ3 FY2016 Comparable, Excluding Divestiture*Revenue$37.9$(0.8)$37.1Operating Income$7.7$(0.1)$7.6

* Non-GAAP financial measure($ Millions)FY2016As ReportedFY2016 Medical Products AdjustmentFY2016 Radon AdjustmentFY2016 Comparable, Excluding Divestitures *Revenue$149.2$(5.8)$(0.1)$143.3Operating Income$26.6$(1.0)$(0.1)$25.5($ Millions)FY2015As ReportedFY2015 Medical Products AdjustmentFY2015 Radon AdjustmentFY2015 Comparable, Excluding Divestitures*Revenue$151.3$(9.9)$(4.7)$136.7Operating Income$23.7$(1.5)$(1.1)$21.1

*Non-GAAP financial measure.EPS for the first nine months of the year have been positively impacted by a one-time tax benefit and by equity earnings at joint ventures favorably impacted by capital salesFiscal Year 2017 Outlook($ Millions)FY 2016 ActualImpact of DivestedBusiness, Gain on Divestiture and Other ExpensesFY 2016Excluding Divested Businesses, Gain on Divestiture and Other Expenses*OriginalFiscalYear 2017 GuidanceRevisedFiscalYear 2017 GuidanceRevenue$149.2($5.9) $143.3$149-$154UnchangedDiluted EPS$1.85($0.22) $1.63$1.65 -1.71$1.81 -1.87

Appendix

IDN HospitalsBusiness FactsProven Technology PlatformFiscal 2016 Financial HighlightsDiverse Markets.$149.2 Million in Annual Revenue .$28.9 Million in International Sales.~ 90% Recurring Revenues.$41.2 Million in Adjusted EBITDA .Adjusted EBITDA margin 27.6%.Headquartered in Glenwood, IL.Founded in 1954 .Approximately 650 employees.8 global markets.73,000 annual customers served; 1.8M annual individuals served.94%+ Customer retention ratesLuxel_Waist.pnginlight_clip_holder_front_L.png.Industry standard OSL technology.Passive measurement of wide range of radiation from low energy X-Ray to high energy neutron.Development of new digital dosimetry platform: Verifii™C:\Users\mdegraff\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content.Outlook\EQH1N7PW\Dosimeter.2.pngImaging CentersRegional HospitalsPhysician OfficesVeterinarianDentalEnergyEmergency ResponseMilitary/National Security/DOEW:\Landauer\Investors\Investor deck\Images\73470968_5.jpgW:\Landauer\Investors\Investor deck\Images\L41513.2429.jpgAcute Care HospitalsProfessional OfficesIndustrial

Use of Non-GAAP Financial MeasuresManagement believes the disclosure of certain non-GAAP financial measures enhances investor understanding of our financial performance. Non-GAAP financial measures disclosed in this report include: Pro Forma Revenue and Pro Forma Operating Income.The Pro Forma Revenue and Pro Forma Operating Income measures exclude the Medical Products business, which was divested in May 2016, and the Radon business, which was divested in September 2015. These financial measures are not recognized measurements under GAAP and should not be considered as an alternative to the most directly comparable measures presented in accordance with GAAP. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measures is included within this presentation.